Blue Hill in the News: Social Media Risk: Forget the Constraints and Open the Employee Conversation

By now, we all have at least one example of how social media can turn into a double-edged sword for organizations. Personal favorites include the SEC’s investigation (and ultimate non-action) regarding Netflix CEO Reed Hastings’s Facebook post for material information disclosure in violation of Regulation FD, the hacked accounts that led to Jeep’s tweet that Chrysler had been sold to Cadillac, and the Associated Press’s tweet report of a White House explosion that caused a $136 billion drop in the stock market. These scenarios provide powerful illustrations, but only scratch the surface of the sorts of consequences that follow social media. As much as these sort of events function to promote anxiety, they also serve as a realistic bar of what’s at stake when companies overlook social media risks.

About David Houlihan, Esq.

David Houlihan researches enterprise risk management, compliance and policy management, and legal technology. He is an experienced advisor in legal and technology fields with a unique understanding of complex information environments and business legal needs.